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Floating Liquefied Natural Gas Market worth over $78bn by 2024

Published Date: July 14, 2017 Author: Global Market Insights, Inc.

FLNG Marketsize is set to exceed USD 78 billion by 2024, according to a new research report by Global Market Insights, Inc.

Favorable government initiatives including fiscal incentives to improve energy supply security will drive the FLNG market size. In 2017, the European Union enacted a proposal to invest USD 500 million in priority energy infrastructure including the implementation of FSRU vessels in the Member States. In 2016, the EU Connecting Europe Facility (CEF) funded the construction of Croatia floating LNG import facility with an objective of diversifying the country’s energy supply.

Significant developments of integrated LNG-to-power projects predominantly across the power deficit countries will stimulate the FSRU market. Growing demand for gas fueled power plants will reinforce the commercialization of LNG regasification which will positively impact the industry growth. Mobility, short construction periods, cost efficiency and lower environmental impact are some of the key factors which will positively drive the FLNG market. In 2015, South Africa Department of Energy (DOE) introduced its LNG to Power IPP Procurement Programme to produce upto 3000 MW of capacity from gas fired power plants.

U.S. FLNG market is set to witness gain over 38 % by 2024. Favorable government measures to minimize ecological damage from marine operations will stimulate the product demand. In 2017, the U.S. Maritime Administration (MARAD) approved the country’s first deep-water floating LNG export facility in the Gulf of Mexico. The facility will include four floating liquefaction vessels, each having a capacity of 210,000 cubic meters of natural gas to reduce number of coastal shipments.

Competitive pricing, existing production assets and flexible volume contracts will embellish the small scale FLNG market growth. These developments can unlock marginal fields by eliminating the use of high pipeline infrastructure costs and highly capital intensive remote onshore LNG plant installation. Africa aims to commission its first floating LNG vessel offshore Cameroon to commence small scale LNG export operations by 2018.

Rising demand for cleaner fuel coupled with stringent government regulations across the maritime industry will stimulate the FLNG market size. The International Maritime Organization Tier III establishes limits on NOx emissions and requires the use of lower sulfur content fuel. The requirements apply to vessels operating in the U.S. waters and North American Emission Control Area (ECA).

Colombia floating liquefied natural gas market is set to exceed 8 MTPA by 2024. High natural gas reserve potential along with flexible fiscal policies will fuel the industry growth. Robust growth in natural gas discoveries subject to the country’s regulatory reforms favorable to foreign investments will further complement the business outlook. Privatization of Colombian energy resources enabled many foreign players to foray into its exploration and production sector.

Technological innovation to design reliable and high performance floating infrastructure will stimulate the Australia FLNG market size. In July 2017, Shell introduced Prelude which can withstand the severest cyclones including those of Category 5. It will enable the development 3 Tcf of gas fields which are uneconomic to produce through other means.

UAE floating liquefied natural gas market share is predicted to grow over 10 % owing to rapid demographic and economic growth across the region. Growing demand for electricity along with increasing internal demand for natural gas will boost the product penetration. Abu Dhabi National Oil company is planning to implement a new floating import terminal (FSRU) in 2017 to offset growing internal gas demand.